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Accounts Receivable and Collections

Accounts receivable (AR) aging report lists unpaid customer invoices, a primary tool used by collections staff to determine which invoices are overdue for payment. The AR collection process is used to evaluate how long customers take to pay their invoices.

This process flow outlines the AR aging and collection process.

AR aging and collection process

It outlines steps such as:

Reviewing balances aged over 30, 60 and 90 days

Coordinating payment status with the claims company

Coordinating payments with customers

Writing off appropriate accounts

Accounts receivable management is the process of ensuring that customers pay their dues on time. Early calling helps the business to prevent themselves from running out of working capital at any point of time. It also prevents overdue payment or non-payment of the pending amounts of the customers . Accounts receivable management incorporates is all about ensuring that customers pay their invoices.
Accounts receivable management can also help to recover in early stage of overdue.